WuXi AppTec, WuXi Biologics surge in Hong Kong as biotech firms put some operations for sale

The gains were made on the back of a report that said the two firms plan to sell certain overseas operations amid heightened US scrutiny

Reading Time:2 minutes

The reported divestment plans of WuXi AppTec and WuXi Biologics show their efforts to head off the potential impact of the US Biosecure Act. Photo: Shutterstock

Published: 6:00pm, 4 Oct 2024

Shares of WuXi AppTec and WuXi Biologics surged in Hong Kong on Friday, following a report that the two firms are looking to divest some of their operations in the wake of new United States legislation targeting Chinese biotech companies.

WuXi AppTec’s shares closed up almost 12 per cent to HK$67.10 on Friday, while shares of subsidiary WuXi Biologics rose nearly 15 per cent to HK$21.45.

Those gains were made after The Financial Times, citing people familiar with the matter, reported on Thursday that WuXi AppTec has put on the market its cell and gene therapy unit WuXi Advanced Therapies, which operates four laboratories and manufacturing facilities in Philadelphia, Pennsylvania.

According to the report, WuXi Biologics is working with advisers to gauge interest from potential bidders for its European production facilities, including two in Germany and one in Ireland.

One of about 10 facilities operated in mainland China by WuXi Biologics, a global contract research, development and manufacturing organisation. Photo: WuXi Biologics

Friday’s market performance comes weeks after the shares of WuXi AppTec and WuXi Biologics tumbled in Hong Kong after the US House of Representatives last month passed a bill that would restrict business with certain targeted Chinese biotech companies.

The reported divestment initiatives show the two companies’ efforts to head off the potential impact of the Biosecure Act, which must be approved by the US Senate before it goes to President Joe Biden for his signature.